Replication data for: Labor Drops: Experimental Evidence on the Return to Additional Labor in Microenterprises
Principal Investigator(s): View help for Principal Investigator(s) Suresh de Mel; David McKenzie; Christopher Woodruff
Version: View help for Version V1
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Project Citation:
de Mel, Suresh, McKenzie, David, and Woodruff, Christopher. Replication data for: Labor Drops: Experimental Evidence on the Return to Additional Labor in Microenterprises. Nashville, TN: American Economic Association [publisher], 2019. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113732V1
Project Description
Summary:
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A field experiment in Sri Lanka provided wage subsidies to randomly chosen microenterprises to test whether hiring additional labor benefits such firms, and whether a short-term subsidy can have a lasting impact on firm employment. Using 12 rounds of surveys to track dynamics four years after treatment, we find that firms increased employment during the subsidy period. Treated firms were more likely to survive, but there was no lasting impact on employment, and no effect on profitability or sales either during or after the subsidy period. There is some heterogeneity in effects; the subsidies have more durable effect on manufacturers.
Scope of Project
JEL Classification:
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C93 Field Experiments
J22 Time Allocation and Labor Supply
J24 Human Capital; Skills; Occupational Choice; Labor Productivity
J31 Wage Level and Structure; Wage Differentials
J38 Wages, Compensation, and Labor Costs: Public Policy
O14 Industrialization; Manufacturing and Service Industries; Choice of Technology
O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
C93 Field Experiments
J22 Time Allocation and Labor Supply
J24 Human Capital; Skills; Occupational Choice; Labor Productivity
J31 Wage Level and Structure; Wage Differentials
J38 Wages, Compensation, and Labor Costs: Public Policy
O14 Industrialization; Manufacturing and Service Industries; Choice of Technology
O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
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